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Well, I hate to say this, but I think most in academia are going to opt for citations in their original (i.e. page instead of Kindle location) format. Basically citations are mostly checked or referenced by going to or calling a library, and looking at the printed edition. Very rarely would someone buy it, to check the reference. And since most academic environments don't have a lot of Kindles (PDF support would have gone a long way towards fixing that, more reasonable prices on the Text Books, bigger screen the rest of the way), unlikely they'll have the combination of a Kindle and the .AZW to check the reference. Remember, you're trying to make it easy on the reader, not the other way around.
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